SEC Approves BTC and ETH Spot ETFs from Hashdex and Franklin Templeton

Key Takeaways

• Hashdex’s Nasdaq Crypto Index US ETF will trade on the Nasdaq stock market, while Franklin Templeton’s Franklin Crypto Index ETF will be listed on the Cboe BZX Exchange. 
• The SEC said that both ETFs’ structures and terms were similar to previously approved spot Bitcoin and Ether products.

The United States Securities and Exchange Commission (SEC) has approved Bitcoin and Ether spot exchange-traded funds (ETFs) from Hashdex and Franklin Templeton. The SEC’s approval, announced on December 19, allows both funds to list on prominent exchanges.

Hashdex’s Nasdaq Crypto Index US ETF will trade on the Nasdaq stock market, while Franklin Templeton’s Franklin Crypto Index ETF will be listed on the Cboe BZX Exchange. The Franklin Crypto Index ETF will track the Institutional Digital Asset Index, while Hashdex’s Crypto Index ETF will track Bitcoin and Ether as part of the Nasdaq Crypto US Settlement Price Index.

In a statement, the SEC said that both ETFs’ structures and terms were similar to previously approved spot Bitcoin and Ether products. Both ETFs will hold spot Bitcoin and Ether.

The regulator also noted that both firms’ filings met the standards outlined in the Exchange Act, which includes rules to prevent fraud and market manipulation. The SEC further added that surveillance-sharing agreements between the exchanges and the CME Group, which operates Bitcoin and Ether futures markets, would help in detecting fraud and maintaining market integrity.

The SEC’s approval follows a months-long review process. Franklin Templeton’s filing was approved on an “accelerated basis” after it submitted an updated filing on December 18. Hashdex had also amended its filing earlier, following the SEC’s request for additional time to evaluate the proposal.

Both ETFs are expected to launch in January, with Bloomberg ETF analyst Eric Balchunas predicting a market-cap weighted allocation of around 80% to Bitcoin and 20% to Ether. Hashdex has indicated plans to potentially add other digital assets, such as Solana and Cardano, to its ETF in the future, aiming to diversify its holdings and appeal to a broader range of investors.

Nate Geraci, president of The ETF Store, stated that the SEC’s approval could lead other firms, such as BlackRock, to introduce similar crypto ETFs. “I expect there will be meaningful demand for these products,” he said, highlighting the growing interest in diversified crypto investment options.